<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000
OR
- -- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
__________________ _____________________
Commission File Number 1-9548
------
The Timberland Company
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 02-0312554
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
200 Domain Drive, Stratham, New Hampshire 03885
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (603) 772-9500
---------------------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
-- ---
On April 28, 2000, 15,550,842 shares of the registrant's Class A Common Stock
were outstanding and 4,675,200 shares of the registrant's Class B Common Stock
were outstanding.
<PAGE> 2
THE TIMBERLAND COMPANY
FORM 10-Q
TABLE OF CONTENTS
PAGE(S)
PART I FINANCIAL INFORMATION (UNAUDITED)
Condensed Consolidated Balance Sheets - 1-2
March 31, 2000 and December 31, 1999
Condensed Consolidated Statements of Income - 3
For the three months ended March 31, 2000
and March 26, 1999
Condensed Consolidated Statements of Cash Flows - 4
For the three months ended March 31, 2000 and
March 26, 1999
Notes to Condensed Consolidated Financial Statements 5-6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-9
PART II OTHER INFORMATION 10
<PAGE> 3
Form 10-Q
Page 1
PART I FINANCIAL INFORMATION
THE TIMBERLAND COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
--------- ------------
<S> <C> <C>
Current assets
Cash and equivalents $158,729 $196,085
Accounts receivable, net of allowance for doubtful
accounts of $4,679 at March 31, 2000 and $4,910 at
December 31, 1999 102,660 78,696
Inventory 131,762 114,673
Prepaid expense 13,461 9,890
Deferred income taxes 15,099 15,297
-------- --------
Total current assets 421,711 414,641
-------- --------
Property, plant and equipment 134,333 130,425
Less accumulated depreciation and amortization (80,276) (75,019)
-------- --------
Net property, plant and equipment 54,057 55,406
Excess of cost over fair value of net assets
acquired, net 17,112 17,533
Other assets, net 4,863 5,731
-------- --------
$497,743 $493,311
======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE> 4
Form 10-Q
Page 2
THE TIMBERLAND COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
--------- ------------
<S> <C> <C>
Current liabilities
Accounts payable $ 25,914 $ 33,247
Accrued expense
Payroll and related 19,886 30,570
Interest and other 50,320 35,038
Income taxes payable 18,533 13,500
--------- ---------
Total current liabilities 114,653 112,355
--------- ---------
Long-term debt 100,000 100,000
Deferred income taxes 8,356 8,588
Excess of fair value of acquired assets over cost, net 4,844 --
Stockholders' equity
Preferred stock, $.01 par value; 2,000,000 shares authorized;
none issued -- --
Class A Common Stock, $.01 par value (1 vote per share);
30,000,000 shares authorized; 18,681,543 shares issued at March 31,
2000 and 18,638,355 shares at December 31, 1999 187 187
Class B Common Stock, $.01 par value (10 votes per share); convertible
into Class A shares on a one-for-one basis; 15,000,000 shares
authorized; 4,675,200 shares issued at March 31, 2000 and 4,675,698
shares at December 31, 1999 47 47
Additional paid-in capital 84,516 82,755
Deferred compensation (3,474) (3,658)
Retained earnings 296,875 282,209
Accumulated other comprehensive loss (4,830) (4,151)
Less treasury stock at cost, 3,103,849 shares at March 31, 2000
and 2,671,349 shares at December 31, 1999 (103,431) (85,021)
--------- ---------
269,890 272,368
--------- ---------
$ 497,743 $ 493,311
========= =========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE> 5
Form 10-Q
Page 3
THE TIMBERLAND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
FOR THE
THREE MONTHS ENDED
------------------------------
MARCH 31, MARCH 26,
2000 1999
--------- ---------
Revenue $208,604 $176,897
Cost of goods sold 113,183 103,768
-------- --------
Gross profit 95,421 73,129
-------- --------
Operating expense
Selling 57,600 47,447
General and administrative 15,225 12,513
Amortization of goodwill 321 421
-------- --------
Total operating expense 73,146 60,381
-------- --------
Operating income 22,275 12,748
-------- --------
Other expense (income)
Interest expense 2,316 2,204
Other, net (1,930) (988)
-------- --------
Total other expense 386 1,216
-------- --------
Income before income taxes 21,889 11,532
-------- --------
Provision for income taxes 7,223 3,690
-------- --------
Net income $ 14,666 $ 7,842
======== ========
Basic earnings per share $ .72 $ .35
======== ========
Weighted-average shares outstanding 20,378 22,202
======== ========
Diluted earnings per share $ .69 $ .34
======== ========
Weighted-average shares outstanding 21,306 22,730
======== ========
Prior year earnings per share and weighted-average shares have been restated to
reflect the 2-for-1 stock split in September, 1999.
See accompanying notes to condensed consolidated financial statements.
<PAGE> 6
Form 10-Q
Page 4
THE TIMBERLAND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
FOR THE
THREE MONTHS ENDED
----------------------------
MARCH 31, MARCH 26,
2000 1999
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 14,666 $ 7,842
Adjustments to reconcile net income
to net cash used by operating activities:
Deferred income taxes (34) (497)
Depreciation and amortization 4,355 4,546
Increase (decrease) in cash from changes in
working capital items:
Accounts receivable (20,754) (25,955)
Inventory (9,538) (12,230)
Prepaid expense (1,885) (1,009)
Accounts payable (10,138) 3,637
Accrued expense 1,036 6,461
Income taxes (1,356) (7,232)
-------- --------
Net cash used by operating activities (23,648) (24,437)
-------- --------
Cash flows from investing activities:
Acquisition of Asian Distributor business 5,237 --
Additions to property, plant and equipment, net (2,514) (3,514)
Other, net 256 (855)
-------- --------
Net cash provided (used) by investing activities 2,979 (4,369)
-------- --------
Cash flows from financing activities:
Common stock repurchases (18,410) --
Issuance of common stock 1,761 149
-------- --------
Net cash provided (used) by financing activities (16,649) 149
-------- --------
Effect of exchange rate changes on cash (38) (545)
-------- --------
Net decrease in cash and equivalents (37,356) (29,202)
Cash and equivalents at beginning of period 196,085 151,889
-------- --------
Cash and equivalents at end of period $158,729 $122,687
======== ========
- --------------------------------------------------------------------------------------------------------
Supplemental disclosure of cash flow information:
Interest paid $ 52 $ 27
Income taxes paid 2,224 11,605
- --------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE> 7
Form 10-Q
Page 5
THE TIMBERLAND COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands)
(Unaudited)
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain the adjustments necessary to
present fairly the Company's financial position, results of operations
and changes in cash flows for the interim periods presented. Such
adjustments consisted of normal recurring items. The unaudited
condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Company's Annual Report on Form 10-K, as
amended by Amendment No. 1 on Form 10-K/A, for the year ended December
31, 1999.
2. The results of operations for the three months ended March 31, 2000 are
not necessarily indicative of the results to be expected for the full
year. Historically, the Company's revenue has been more heavily
weighted to the second half of the year.
3. Inventory consisted of the following:
MARCH 31, 2000 DECEMBER 31, 1999
-------------- -----------------
Raw materials $ 3,812 $ 4,493
Work-in-process 2,636 2,832
Finished goods 125,314 107,348
-------- --------
$131,762 $114,673
======== ========
4. Comprehensive income for the three months ended March 31, 2000 and
March 26, 1999 follows:
March 31, March 26,
2000 1999
--------- ---------
Net income $14,666 $ 7,842
Change in cumulative translation adjustment (679) (2,272)
------- -------
Comprehensive income $13,987 $ 5,570
======= =======
5. Business segment revenue, income (loss) before income taxes and total
assets for the three months ended March 31, 2000 and March 26, 1999
follow:
<TABLE>
<CAPTION>
U.S. U.S. UNALLOCATED
2000 WHOLESALE RETAIL INTERNATIONAL CORPORATE CONSOLIDATED
---- --------- ------ ------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Revenue $ 92,726 $34,143 $ 81,735 $ -- $208,604
Income (loss) before
income taxes 24,593 (258) 13,240 (15,686) 21,889
Total assets 135,734 32,350 126,243 203,416 497,743
1999
----
Revenue $ 79,246 $25,998 $ 71,653 $ -- $176,897
Income (loss) before
income taxes 17,275 (1,306) 12,326 (16,763) 11,532
Total assets 159,704 33,378 103,642 177,183 473,907
</TABLE>
A discussion of segment revenue and profitability is contained in
Management's Discussion and Analysis of Financial Condition and Results
of Operations.
<PAGE> 8
Form 10-Q
Page 6
THE TIMBERLAND COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands)
(Unaudited)
6. Dilutive securities included in the calculation of diluted
weighted-average shares were 850,473 and 527,988 for the first quarter
of 2000 and 1999, respectively. All share and per share amounts have
been restated for the stock split in September, 1999.
7. On February 18, 2000, the Company signed an agreement under which it
will re-acquire from Inchcape plc the exclusive distribution rights
for the sale of Timberland(R) branded products throughout the
Asia-Pacific region. In connection with this transaction, the Company
acquired the stock of the Inchcape plc distribution subsidiaries in
Japan, Hong Kong, Malaysia and Singapore (the Asian subsidiaries). The
purchase price allocation is as follows:
<TABLE>
<S> <C>
Acquisition of business:
Fair value of assets acquired $ 20,729
Fair value of liabilities assumed (14,082)
--------
Fair value of net assets acquired 6,647
Cash paid (1,223)
Acquisition costs (480)
--------
Excess of fair value of acquired net assets over cost $ 4,944
========
</TABLE>
The fair value of net assets acquired reflects $6,460 of cash received
resulting in net cash received of $5,237.
As a result of the acquisition, the Company has released Inchcape plc
from its obligations under the Distributorship, Supply and Retail
Development Agreement dated January 26, 1995. Additionally, with
respect to businesses in other countries, the Company may terminate
them, identify new distributors, or directly distribute products in
those countries. Also, as part of the transaction, the Company will
participate with Inchcape plc in any net proceeds received from the
disposition of the assets in Australia, New Zealand, Thailand and
Taiwan.
This transaction has been accounted for under the purchase method of
accounting and, accordingly, the results of operations for the Asian
subsidiaries for the period from the acquisition date are included
in the accompanying condensed consolidated financial statements. The
purchase price has been allocated to the assets purchased and
liabilities assumed based on preliminary fair values at the date of
acquisition. This transaction resulted in the recording of excess of
fair value of acquired net assets over cost, which is being amortized
on a straight-line basis over a 10 year period. Pro-forma data is not
provided since this transaction does not have a material impact on the
Company's condensed consolidated financial statements.
<PAGE> 9
Form 10-Q
Page 7
THE TIMBERLAND COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Unaudited)
RESULTS OF OPERATIONS
FIRST QUARTER 2000 COMPARED WITH FIRST QUARTER 1999
Revenue for the first quarter of 2000 was $208.6 million, an increase of $31.7
million, or 17.9%, compared with the $176.9 million reported for the first
quarter of 1999.
Domestic revenue for the first quarter of 2000 was $126.9 million, an increase
of $21.6 million, or 20.5%, compared with the same period in 1999. Domestic
revenue represented 60.8% of total revenue for the first quarter of 2000,
compared with 59.5% for the first quarter of 1999. The U.S. Wholesale business
segment revenue increased 17.0% for the first quarter of 2000, compared with
the same period in 1999, primarily due to increased footwear unit sales. This
increase was partially offset by a decline in domestic wholesale apparel unit
sales and average selling price. The U.S. Retail segment revenue increased
31.3%, compared with the same period in 1999. Footwear and apparel and
accessories unit sales drove this improvement. Comparable domestic retail and
factory store sales increased 12.5%.
International revenue for the first quarter of 2000 was $81.7 million, an
increase of $10.1 million, or 14.1%, compared with the same period in 1999.
International revenue comprised 39.2% of total revenue for the first quarter of
2000, compared with 40.5% for the first quarter of 1999. International revenue
for the first quarter of 2000 reflects the acquisition of the Asian subsidiaries
(see Note 7). Excluding Asia, international revenue increased 5.4%, compared
with the same period in 1999. This improvement over the prior year period was
due to unit sales increases in the European wholesale and retail markets, in
both footwear and apparel, partially offset by the impact of foreign exchange
and, to a lesser degree, lower footwear and apparel average selling prices. On a
constant dollar basis, European revenue grew 15.1%, compared with the same
period in 1999.
Footwear revenue for the first quarter of 2000 was $155.4 million, an increase
of $24.8 million, or 19.0%, compared with the same period in 1999. The increase
was attributable to growth in unit sales worldwide and, to a lesser degree, the
acquisition of the Asian subsidiaries, partially offset by the impact of foreign
exchange on sales of the Company's European subsidiaries. By category, the
increase was primarily attributable to Boots and, to a lesser degree, the
Mountain Athletics (TM) by Timberland sub-brand and Kids' footwear. These
increases were partially offset by declines in the Men's Casual and Performance
categories. In total, footwear unit sales increased 20.5% over the same period
last year.
Apparel and accessories revenue for the first quarter of 2000 was $50.6 million,
an increase of $8.0 million, or 18.8%, compared with the same period in 1999.
The increase occurred primarily in worldwide retail unit sales and, to a lesser
degree, the acquisition of the Asian subsidiaries. These unit sales increases
were partially offset by an overall 2.2% decline in average selling price. In
total, apparel and accessories unit sales increased 21.4% over the same period
last year.
Worldwide revenue from Company-owned retail and factory stores for the first
quarter of 2000 was $47.4 million, an increase of $14.8 million, or 45.5%,
compared with the same period in 1999. The increase in revenue was primarily due
to footwear and apparel and accessories unit sales, and, to a lesser degree, the
acquisition of the Asian subsidiaries. Excluding the impact of the Asian
subsidiaries, worldwide retail revenue increased 31.2%, compared with the same
period last year.
<PAGE> 10
Form 10-Q
Page 8
Gross profit as a percentage of revenue for the first quarter of 2000 was 45.7%,
an increase of 4.4 percentage points from the 41.3% reported for the first
quarter of 1999. The improvement in gross profit was due primarily to lower
manufacturing and third party sourcing costs and to mix of higher margin
products.
Operating expense was $73.1 million for the first quarter of 2000, up $12.8
million, or 21.1%, from the $60.4 million reported for the first quarter of
1999. Operating expense as a percentage of revenue for the first quarter of 2000
increased to 35.1%, from the 34.1% reported for the first quarter of 1999. The
increase reflects continued investments in selling, marketing, distribution and
product development. Excluding Asia, operating expense grew at the same rate as
revenue.
Interest expense for the first quarter of 2000 and 1999 was $2.3 million and
$2.2 million, respectively. Other income, at $1.9 million, was $0.9 million
higher than the same period last year due to interest income generated by higher
average cash equivalents balances.
Income (loss) before income taxes for the first quarter of 2000 improved in all
segments compared with the same period in 1999. The improvement in the U.S.
Wholesale segment was primarily due to increased unit sales, improved gross
margin rates and lower operating expense as a percentage of revenue in the
wholesale footwear business. In the U.S. Retail segment, the improvement was due
to both footwear and apparel unit sales, improved gross margin rates and lower
operating expense as a percentage of revenue. Internationally, increased
footwear and, to a lesser degree, apparel unit sales drove the income before
taxes improvement, substantially offset by the impact of foreign exchange.
The effective tax rate for the three months ended March 31, 2000 and March 26,
1999 was 33% and 32%, respectively.
LIQUIDITY AND CAPITAL RESOURCES
Cash used by operations for the first quarter of 2000 was $23.6 million,
compared with $24.4 million used during the same period in 1999. The use of cash
in 2000 was primarily due to increases in accounts receivable and inventory, and
a reduction in accounts payable, from year end 1999. The use of cash for
receivables and inventory is directionally consistent with prior year
performance as a result of business requirements, but reflects enhanced
inventory and receivables management. The reduction in accounts payable was due
to a higher year end 1999 balance compared with the balance at year end 1998.
Days sales outstanding at March 31, 2000 were 44 days compared with 51 days at
March 26, 1999. Wholesale days sales outstanding decreased to 46 days at March
31, 2000 from 55 days at March 26, 1999. Inventory turns increased to 3.6 times
for the first quarter of 2000, compared with 2.9 times for the first quarter of
1999.
Net cash provided by investing activities amounted to $3.0 million for the first
quarter of 2000. Cash used by financing activities was $4.4 million for the
first quarter of 1999. The cash provided in 2000 was due to the acquisition of
the Asian subsidiaries, as referenced in Note 7, partially offset by capital
expenditures. Capital expenditures for the first quarter of 2000 were $2.5
million, compared with $3.5 million for the same period in 1999. Cash used by
financing activities was $16.6 million in the first quarter of 2000, reflecting
stock repurchases of $18.4 million. Cash provided by financing activities was
$0.1 million for the first quarter of 1999.
The Company has available unsecured revolving and committed lines of credit as
sources of financing for its seasonal and other working capital requirements.
The Company's debt-to-capital ratio was 27.0% at March 31, 2000, compared with
26.9% at December 31, 1999 and March 26, 1999. The increase in the ratio from
December 31, 1999 was due to the stock repurchase program.
<PAGE> 11
Form 10-Q
Page 9
Management believes that the Company's capital needs for 2000 will be met
through its existing credit facilities and cash flows from operations without
the need for additional permanent financing. However, as discussed in an exhibit
to the Company's Form 10-K for the year ended December 31, 1999, entitled
"Cautionary Statements for Purposes of the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995," several risks and uncertainties could
cause the Company to need to raise additional capital through equity and/or debt
financing. The availability and terms of any such financing would be subject to
prevailing market conditions and other factors at that time.
NEW ACCOUNTING PRONOUNCEMENTS
In 1998, the Financial Accounting Standards Board ("FASB") issued Statement of
Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities," SFAS No. 133 was not required to be
implemented by the Company until fiscal 2000. In June 1999, the FASB issued SFAS
No. 137, "Accounting for Derivative Instruments and Hedging Activities-Deferral
of the Effective Date of FASB Statement No. 133-An Amendment of FASB Statement
No. 133." SFAS No. 137 delayed the original implementation date of SFAS No. 133
by one year. Since the requirements of SFAS No. 133 are complex and its scope
far reaching, the Company has not completed its evaluation of the impact of this
standard on its consolidated financial statements.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's current policies and business practices regarding derivative
instruments are consistent with its fiscal year end 1999 Annual Report
disclosure. As of March 31, 2000, the Company had no short-term financing
outstanding and one long-term debt instrument outstanding at a fixed interest
rate of 8.94% with a maturity in December, 2001. The Company's foreign currency
exposure is generated primarily from its European operating subsidiaries. As of
March 31, 2000, there were no material foreign currency transactions or cash
exposures that were not hedged. Based upon sensitivity analysis, a 10% change in
foreign exchange rates would cause the fair value of the Company's financial
instruments to increase/decrease by approximately $8.5 million.
<PAGE> 12
Form 10-Q
Page 10
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
EXHIBIT DESCRIPTION
------- ------------
27 Financial Data Schedule
(b) Reports on Form 8-K - There were no reports on Form 8-K filed during
the period covered by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
The Timberland Company
----------------------------
(Registrant)
Date: May 15, 2000 /s/ Brian P. McKeon
----------------------------
Brian P. McKeon
Senior Vice President
and Chief Financial Officer
Date: May 15, 2000 /s/ Dennis W. Hagele
----------------------------
Dennis W. Hagele
Vice President-Finance
and Corporate Controller
(Chief Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2000 AND THE
CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31,
2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 158,729
<SECURITIES> 0
<RECEIVABLES> 107,339
<ALLOWANCES> 4,679
<INVENTORY> 131,762
<CURRENT-ASSETS> 421,711
<PP&E> 134,333
<DEPRECIATION> 80,276
<TOTAL-ASSETS> 497,743
<CURRENT-LIABILITIES> 114,653
<BONDS> 100,000
0
0
<COMMON> 234
<OTHER-SE> 269,656
<TOTAL-LIABILITY-AND-EQUITY> 497,743
<SALES> 208,604
<TOTAL-REVENUES> 208,604
<CGS> 113,183
<TOTAL-COSTS> 113,183
<OTHER-EXPENSES> 321
<LOSS-PROVISION> 398
<INTEREST-EXPENSE> 2,316
<INCOME-PRETAX> 21,899
<INCOME-TAX> 7,223
<INCOME-CONTINUING> 14,666
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,666
<EPS-BASIC> .72
<EPS-DILUTED> .69
</TABLE>
